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ira [324]
3 years ago
6

Sheffield Corp. uses the composite method and its composite rate is 7.5% per year, what entry should it make when plant assets t

hat originally cost $134000?
Business
1 answer:
muminat3 years ago
8 0

Answer:

$ 142 375

Explanation:

Thinking process:

Let the composite rate be given by the formula:

A = P (1+\frac{r}{n})^{nt}

where

A = amount after interest

\frac{r}{n} = interest rate

t = time

n = number of times (per year)

Therefore, this gives:

A =134 000 (1+\frac{0.75}{12})^{1}\\   = $ 142 375

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